RBS Global Banking and Markets gets a particularly good deal from its investment bankers.
Our analysis shows that on a profit-per-head basis, RBS's investment bankers are some of the most profit-generative around. They are also some of the worst paid.
In the first quarter, for example, profit per head at RBS GBM was 59k ($96k). At Goldman Sachs it was $76k. At JPMorgan it was $89k.
Only Deutsche Bank's investment bankers generated more in profit than RBS's ($212k), but Deutsche's figures are notoriously unreliable because back office staff are not included in headcount figures for its securities business; per-head figures at DB are always inflated as a result.
This leaves RBS investment bankers looking very under-appreciated. In the first quarter, average pay per head at RBS GBM was just 45k ($75k). At Goldman, it was $147k and at JPMorgan it was $124k.
RBS bankers clearly have reason to be paid more. Or they have reason to get hired by JPMorgan or Goldman Sachs.
League table of investment bank profitability (and pay) per head, Q11
1) Deutsche Bank (Corporate and Investment Bank)
Profit per head: $212k
Pay per head: $187k
2) RBS (Global Banking and Markets)
Profit per head: $96k
Pay per head: $74k
3) JPMorgan (Investment Bank)
Profit per head: $89k
Pay per head: $124k
4) Goldman Sachs
Profit per head: $77k
Pay per head: $148k
5) Credit Suisse (Investment Bank)
Profit per head: $74k
Pay per head: $133k
6) UBS (Investment Bank)
Profit per head: $54k
Pay per head: $121k